Intel (INTC) Maintains Throne in Semi Market: 16% Market Share and 23% Increase in Sales
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In a release Thursday morning, IHS (NYSE: IHS) suggested 2011 was Intel's (Nasdaq: INTC) year in the semiconductor market, outpacing top competitors Samsung Electronics and Texas Instruments (NYSE: TXN). IHS is now forecasting the global semiconductor market to grow 1.9 percent in 2011, up from a previous estimate of 1.2 percent.
IHS reported Intel’s overall market share in the semi space increased from 13.2 percent in 2010 to 15.9 percent. The firm is modeling for the company to grow total sales by 23 percent year over year to $49.7 billion.
Intel generates a majority of its semiconductor revenue from the sale of microprocessors and NAND flash memory, which IHS notes is the strongest segments in the chip industry for 2011. Intel is expected to post revenue growth of 15-20 percent in these areas.
Intel’s revenue this year was largely boosted by the acquisition of Infineon Technologies AG’s wireless solutions business. IHS points out Intel was not the only company who made a large acquisition to wiggle towards the top as TI (NYSE: TXN) purchased fellow U.S. supplier National Semiconductor Corp. Although Intel is expecting a 23 percent increase in revenue for 2011, the company will not post the largest revenue gain as Qualcomm’s (Nasdaq: QCOM) is expected to see a 39.9 percent revenue increase for 2011.
Samsung is expected to come in second in the industry with 9.3 percent market share and $29.2 billion in total sales. This is a big step for Intel as Samsung has been closing the market share gap between the two from 6.5 percent in 2008 to 3.9 percent in 2010. The company was able to increase the gap back up to 6.6 percent this last year.
Some of the less performing segments within the semiconductor market include DRAM and other memory segments -- except for NAND. IHS reports, “global revenue for EEPROM, SRAM and NOR flash memory all will decline by double-digit percentages this year.”
The Americas segment is expected to account for 50.9 percent of total semiconductor market share while the Asia-Pacific region is estimated to account for 21.4 percent. Japan, which ranked second in 2010 for total semiconductor market share, is only anticipated to account for 18.9 percent of total market share in 2011.
IHS reported Intel’s overall market share in the semi space increased from 13.2 percent in 2010 to 15.9 percent. The firm is modeling for the company to grow total sales by 23 percent year over year to $49.7 billion.
Intel generates a majority of its semiconductor revenue from the sale of microprocessors and NAND flash memory, which IHS notes is the strongest segments in the chip industry for 2011. Intel is expected to post revenue growth of 15-20 percent in these areas.
Intel’s revenue this year was largely boosted by the acquisition of Infineon Technologies AG’s wireless solutions business. IHS points out Intel was not the only company who made a large acquisition to wiggle towards the top as TI (NYSE: TXN) purchased fellow U.S. supplier National Semiconductor Corp. Although Intel is expecting a 23 percent increase in revenue for 2011, the company will not post the largest revenue gain as Qualcomm’s (Nasdaq: QCOM) is expected to see a 39.9 percent revenue increase for 2011.
Samsung is expected to come in second in the industry with 9.3 percent market share and $29.2 billion in total sales. This is a big step for Intel as Samsung has been closing the market share gap between the two from 6.5 percent in 2008 to 3.9 percent in 2010. The company was able to increase the gap back up to 6.6 percent this last year.
Some of the less performing segments within the semiconductor market include DRAM and other memory segments -- except for NAND. IHS reports, “global revenue for EEPROM, SRAM and NOR flash memory all will decline by double-digit percentages this year.”
The Americas segment is expected to account for 50.9 percent of total semiconductor market share while the Asia-Pacific region is estimated to account for 21.4 percent. Japan, which ranked second in 2010 for total semiconductor market share, is only anticipated to account for 18.9 percent of total market share in 2011.
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